Sep 27, 2023 Special Council

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MORNING, DAWN.

HI, EVERYONE. GREETINGS.

GOOD MORNING. GOOD MORNING, EVERYONE.

[1. DECLARATION OF A QUORUM AND CALL MEETING TO ORDER]

IT IS SEPTEMBER 27TH, 2023.

IT'S MY HONOR TO CALL THE SPECIAL MEETING FOR THE CITY COUNCIL OF GALVESTON TO ORDER.

THANK YOU, EVERYONE, FOR BEING HERE.

STAFF AND THOSE IN THE AUDIENCE.

THANK YOU. AND ALSO, IF THERE'S ANYONE WATCHING THIS IN THE COMMUNITY, GLAD TO HAVE YOU WITH US THIS MORNING.

WE HAVE A QUORUM.

COULD WE HAVE A ROLL CALL, PLEASE? VERY GOOD.

I'M GOING TO OPEN FOR PUBLIC COMMENT ITEM THREE.

[3. PUBLIC COMMENT]

WOULD YOU LIKE TO MAKE A COMMENT? PLEASE IDENTIFY YOURSELF AND YOUR ADDRESS, IF YOU WOULD, PLEASE.

THIS IS SASHA FRANCIS.

MY WHOLE ADDRESS.

EXCUSE ME. DID YOU SAY MY ADDRESS? YEAH. ARE YOU IN GALVESTON HERE? OH, YES, I'M IN GALVESTON. USUALLY HAVE YOU FILL OUT A FORM? YEAH, I JUST. I JUST CAME TO HEAR MORE ABOUT THE PROPERTY TAX CHANGES SO I CAN HELP BETTER EXPLAIN IT TO RESIDENTS, BECAUSE IT'S REALLY CONFUSING WHEN WE'RE TRYING TO READ IT ON THE CITY FACEBOOK PAGE.

SO THAT'S ALL I CAME HERE TO, TO HEAR AND TRY TO COMPREHEND BETTER SO I CAN EXPLAIN IT TO MY NEIGHBORS AS TO HOW THIS IS AFFECTING OUR HOMES AND WHAT WE'RE PAYING IN TAXES EACH YEAR. OKAY.

OR OR THIS YEAR COMPARED TO LAST YEAR.

SO VERY GOOD. I JUST WANT TO LEARN MORE ABOUT THAT AND I MIGHT HAVE SOME QUESTIONS.

SO THAT'S WHY I'M HERE. WHEN WE GO THROUGH THIS IN THE MOTION, WE'LL TRY TO MAYBE GIVE MORE DETAILS ON THAT THAT YOU COULD TAKE HOME WITH YOU.

THANK YOU. AND IF NOT, AFTERWARDS, PLEASE GET WITH US, ONE OF US.

WE'LL BE HAPPY. OR THE CITY MANAGER COULD GIVE YOU INPUT ON THAT.

AWESOME. YEAH, JUST SOME, LIKE, A GOOD, REAL WORLD EXAMPLE OF A HOME ON THE ISLAND WOULD BE AWESOME.

THANK YOU SO MUCH.

THANK YOU VERY MUCH.

ANY OTHER PUBLIC COMMENT THAT WE HAVE? IT IS 9:02 A.M..

I'M GOING TO CLOSE THE PUBLIC COMMENT AT THIS POINT.

LET'S MOVE TO PUBLIC HEARINGS.

[4.A. Consider For Approval An Ordinance Of The City Of Galveston, Texas, Levying Ad Valorem Taxes In The Amount Of 40 Cents And 8.850 Mills ($0.408850) Upon Each One Hundred Dollars ($100.00) Of Property Valuation For The Tax Year 2023; Making Various Findings And Provisions Related To The Subject. (M. Loftin/C. Ludanyi)]

ITEM 4A, CONSIDER FOR APPROVAL AN ORDINANCE OF THE CITY OF GALVESTON, TEXAS, LEVYING AD VALOREM TAXES IN THE AMOUNT OF $0.40 AND 8.850 MILLS. 0.408850 APPOINT UPON EACH $100 OF PROPERTY VALUATION FOR THE TAX YEAR 2023, MAKING VARIOUS FINDINGS AND PROVISIONS RELATED TO THE SUBJECT.

VERY GOOD. THANK YOU VERY MUCH.

COUNCIL. BEFORE WE START AND OPEN THE PUBLIC COMMENT, WE HAVE MIKE LOFTON AND SHEILA LADANYI WITH US THIS MORNING.

ANY QUESTIONS OF MIKE OR SHEILA? ALL RIGHT. THANK YOU VERY MUCH.

IT IS. 9:03 A.M..

I'M GOING TO OPEN THE PUBLIC COMMENT ON THE ITEM 4A, IS THERE ANY INPUT FROM ANYONE ON THIS PARTICULAR ITEM? HEARING NO RESPONSE.

IT'S 9:03 A.M..

I'M GOING TO CLOSE THE PUBLIC HEARING AND BRING THIS BACK TO COUNCIL.

THIS WILL BE A RECORDED VOTE COUNCIL AND WE NEED A MINIMUM OF FIVE VOTES TO PASS THIS PARTICULAR ITEM.

I'M GOING TO MAKE A MOTION FOR APPROVAL OF ITEM 4A, IS THERE A SECOND? I WOULD SECOND. I HAVE A SECOND BY THE MAYOR PRO TEM DAVID COLLINS.

OPEN TO DISCUSSION.

SHEILA, THERE'S SPECIFIC LANGUAGE YOU HAVE TO USE FOR THE MOTION.

IT IS ON THE STAFF REPORT AT THE VERY BOTTOM OF THE PAGE.

OKAY. AND YOU HAVE TO STATE THE TAX RATE AS WELL AS THE MAINTENANCE AND OPERATIONS AND DEBT SERVICE RATE ASSOCIATED WITH THAT.

AND YOU HAVE TO STATE THAT IT IS AN INCREASE IN THE ADOPTION OF THE TAX RATE OF EFFECTIVELY 4.18%.

BUT IT'S THE LANGUAGE IS ON THE FRONT PAGE OF THE STAFF REPORT.

THANK YOU VERY MUCH, SHEILA.

LET ME LET ME PULL THAT UP AND MAKE SURE WE GET THAT CORRECT ON THAT.

AND IT'S ON THE STAFF REPORT.

OH, OKAY.

I MOVE THAT THE PROPERTY TAX RATE BE INCREASED BY THE ADOPTION OF A TAX RATE OF 0.408850, WHICH IS EFFECTIVELY A 4.18% INCREASE IN THE

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THIS TAX RATE IS COMPRISED OF A MAINTENANCE AND OPERATION RATE OF 0.365784 AND A DEBT SERVICE RATE OF 0.043066.

COULD YOU DESCRIBE THIS? SOUNDS DIFFERENT. SECOND THAT, BY THE WAY, COUNCILMAN COLLINS, SECOND, IT COULD YOU EXPLAIN THAT THE TERMINOLOGY SEEMS..

SO COMPLICATED, I THINK THAT'S WHY WE HAVE SOMEONE IN THE AUDIENCE AS WELL.

SO THE WAY TRUTH AND TAXATION WORKS, AS WE KNOW, IS THERE'S A NO NEW REVENUE RATE AND A VOTER APPROVAL TAX RATE.

AND THE RATE THAT THE BUDGET THAT WAS ADOPTED TWO WEEKS AGO WAS BASED ON IS THE 0.408850, WHICH IS IN BETWEEN THOSE TWO RATES. BUT TRUTH IN TAXATION REQUIRES THAT IF YOU SELECT ANY RATE OVER THE NO NEW REVENUE RATE THAT IT IS EFFECTIVELY IT USED TO BE THE EFFECTIVE TAX RATE, IT IS EFFECTIVELY A TAX RATE INCREASE, EVEN THOUGH IT'S A DECREASE FROM LAST YEAR'S ACTUAL RATE AND IT'S LESS THAN THE VOTER APPROVAL RATE, IT IS 4.18% HIGHER THAN THE NO NEW REVENUE RATE THAT WAS CALCULATED FOR THIS TAX YEAR.

SO IN OTHER WORDS, IF YOUR VALUE OF YOUR HOUSE DID NOT INCREASE YOUR YOU WILL HAVE A PRETTY SUBSTANTIAL TAX CUT THIS YEAR IF YOUR VALUE OF YOUR HOME INCREASED DEPENDING ON HOW MUCH IT INCREASED, YOU MAY EITHER BE EQUAL TO LAST YEAR OR A LITTLE BIT MORE DEPENDING ON HOW MUCH THE VALUE OF YOUR HOME WENT UP.

CORRECT. AND JUST JUST TO EXPAND ON THAT FOR THE LADY IN THE AUDIENCE THERE, WE HAVE FOR A NUMBER OF YEARS NOW THE TAX RATE, THE PROPERTY TAX RATE IN THE CITY OF GALVESTON HAS BEEN GOING DOWN EVERY YEAR.

IT IS NOW FROM COMPARED TO LAST YEAR, OUR PROPERTY TAX RATE THAT WE ARE GETTING READY TO TAKE ACTION ON IS APPROXIMATELY THREE AND ONE HALF CENTS LOWER THAN THE YEAR BEFORE.

IT'S EVERY YEAR GOING DOWN.

WE'RE AT THE THE TAX RATE THAT WE'LL BE VOTING ON, AS WE KNOW, IS 0.48850.

THAT IS ONE OF THE LOWEST TAX RATES IN THE ENTIRE GALVESTON COUNTY PROPERTY TAX RATE.

I MET WITH A NUMBER OF MAYORS HERE LAST WEEK ON A FORUM THAT I WAS ON AND BEFORE THE FORUM WE TALKED ABOUT TAX RATES AND WE HAVE ONE OF THE LOWEST IN GALVESTON COUNTY.

I THINK FRIENDSWOOD OR PEARLAND, I THINK IS 0.62 TAX RATE.

MANY OF THEM ARE MUCH HIGHER THAN WE ARE.

SO THAT'S KIND OF SOME BACKGROUND INTO THAT.

COUNCILMAN COLLINS THEN COUNCILMAN FINKLEY, I JUST LIKE TO THANK THE LEGISLATURE FOR MAKING THIS CLEAR.

CELIA, IN ONE OF YOUR REPORTS, YOU HAVE A WONDERFUL TABLE THAT HAS AN EXAMPLE OF A $200,000 VALUATION, 300,000 AND $400,000 VALUATION.

AND IT SHOWS WHAT LAST YEAR'S ASSESSED TAXES WOULD HAVE BEEN AND THEN WHAT THE COMPARATIVE ONE WOULD BE UNDER THIS PROPOSED TAX RATE.

AND IT SHOWS THE MINIMAL DIFFERENCE OF THE INCREASE THAT YOU RECEIVED, CORRECT? YES. SO IT'S ON THE THIRD PAGE IF YOU WANT TO FLIP THROUGH, MAYOR.

BUT ESSENTIALLY THE WAY WE CALCULATE THAT IS WE SAY THE MAX INCREASE IN APPRAISAL VALUE IS CAPPED AT 10% AND THEN WE APPLY THE HOMESTEAD EXEMPTION, WHICH COUNCIL HAS ADOPTED AS A MINIMUM OF 60,000 OR 20%.

AND SO WHAT THAT MEANS IS ANY HOME VALUED UNDER 300,000 IS GOING TO HAVE A 60% HOMESTEAD EXEMPTION AND THEN STARTING AT $300,000, THAT 20% KICKS IN BECAUSE THAT'S WHERE YOU START GOING OVER 60.

I BELIEVE THE HIGHEST TAX INCREASE IN THAT GRAPH IS BELOW 300,000.

SO IT'S GOING TO BE $32 YEAR OVER YEAR.

AND THEN AS YOU GO UP, IT'S SOMEWHERE BETWEEN LIKE 15 AND 25 OR SOMETHING AS THE THAT'S THE INCREASE YEAR OVER YEAR OF WHAT THAT TAX WILL REPRESENT IN THOSE SPECIFIC CATEGORIES.

VERY GOOD. THAT WAS THE ONE THAT I FOUND MOST USEFUL AS FAR AS THE PRAGMATIC VIEW OF UNDERSTANDING INDIVIDUAL PROPERTY IMPACTS.

ABSOLUTELY. YES.

OKAY. THANK YOU, SHEILA, VERY MUCH.

APPRECIATE THAT.

ALL RIGHT. VERY GOOD.

ANY OTHER QUESTIONS? OR POINTS.

YES, SIR. BEFORE WE VOTE, I WANT TO THANK SHEILA FOR ALL OF HER WORK.

SHE SHE LITERALLY DRANK FROM A FIRE HOSE, LEARNING ALL THIS, GETTING IN HERE.

BUT SHE'S DONE A FANTASTIC JOB WITH THIS AND THE OTHER BUDGETS THAT WE'VE TASKED HER WITH THIS YEAR.

I ALSO WANT TO THANK DEBBIE PIERCE FOR HER FOREVER WORK.

YOU NEVER SEE DEBBIE HERE, BUT SHE IS THE ONE THAT DOES THE LION'S SHARE OF THIS WORK.

BUT THE ONE THING I DO WANT TO MAKE SURE I MENTION EVERYBODY, THIS WILL PROBABLY BE MIKE LOFTON'S LAST MUNICIPAL BUDGET THAT HE DOES.

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AND WE CAN THANK SHEILA ALL DAY LONG, BUT HE CREATED SHEILA IN HIS IMAGE MANY YEARS AGO AT U OF H.

AND BUT WE HAVE BEEN SO VERY BLESSED TO HAVE MIKE LOFTON HERE.

I'M I AM SO PRIVILEGED TO HAVE BEEN ABLE TO WORK WITH HIM AND TO LEARN FROM HIM.

AND I'M EVEN MORE PRIVILEGED TO BE ABLE TO CALL HIM A FRIEND.

BUT WE'RE GOING TO MISS YOU, MIKE.

THANK YOU FOR ALL YOU'VE DONE.

THANK YOU. IF I'M NOT MISTAKEN TO MIKE, YOU HAVE, I THINK.

THINK WE HAVE A LITTLE PARTY TOMORROW AFTERNOON HERE IN 204 TO CELEBRATE ALL THE MANY, MANY, MANY YEARS OF WORK THAT MIKE LOFTON HAS DONE, BUT ESPECIALLY HIS WORK HERE AT THE CITY OF GALVESTON.

YEAH, MIKE, THANK YOU.

AS BRIAN MENTIONED, AND WE YOU HAVE YOUR GOING AWAY PARTY TOMORROW AT TWO.

I THINK A NUMBER OF US WILL BE THERE.

SO LOOKING FORWARD TO PERSONALLY THANKING YOU AGAIN AND GIVING WELL WISHES FOR YOUR FUTURE.

WE'RE HOPING FOR LIVE SAXOPHONE MUSIC TOMORROW.

MIKE, THERE'S A RUMOR THAT THAT MIGHT OCCUR.

I WANT TO MAKE A COMMENT, TOO.

I WANT TO MAKE SURE THAT THE PUBLIC UNDERSTANDS WE ARE LOWERING THIS TAX RATE.

AND AS I MENTIONED, EVERY YEAR IT HAS BEEN LOWERED, HAS BEEN LOWERED AGAIN THIS YEAR.

THAT DOES NOT NECESSARILY MEAN THE AMOUNT OF TAXES YOU PAY ARE GOING TO BE LOWERED.

IT DEPENDS ON THE APPRAISED VALUE OF YOUR HOME.

AND THAT'S SOMETHING THAT THE CITY OF GALVESTON DOES NOT HAVE ANY CONTROL OVER.

THAT'S THE GALVESTON COUNTY APPRAISAL DISTRICT.

BUT JUST SO YOU UNDERSTAND, THIS IS OUR PROPERTY TAX RATE THAT WE ARE LOWERING.

COMING UP. VERY GOOD.

LET'S HAVE OUR VOTE, IF WE COULD, PLEASE.

BROWN. YES.

COLLINS YES. LEWIS YES.

BINKLEY YES.

YES. ROBB NO.

AND I'D LIKE TO ADD TO THAT.

I'M VOTING NO BECAUSE IT IS A TAX INCREASE.

AND I BELIEVE THAT IF THEY WOULD HAVE IF WE COULD TAKE THE PENCIL TO THE PAPER THAT WE COULD GET TO A NO NET REVENUE RATE, WHICH WOULD BE MY GOAL.

VERY GOOD.

AND THIS PARTICULAR RATE, IF I'M NOT MISTAKEN, BEFORE BEFORE WE FINISH THAT VOTE, IT IT DID PASS WITH OUR FIVE AFFIRMATIVE VOTES HERE.

THIS RATE IS APPROXIMATELY ONE PENNY ABOVE THE NO NEW REVENUE RATE THAT WE'RE APPROVED.

IS THAT CORRECT, SHEILA? YES, IT IS APPROXIMATELY ONE PENNY OVER THE NO NEW REVENUE RATE.

THAT IS CORRECT. OKAY.

VERY GOOD.

BUT IT IS STILL A TAX INCREASE BECAUSE OF THE INCREASE IN APPRAISALS.

OKAY. VERY GOOD.

WE HAVE NOW GONE THROUGH ALL THE ITEMS ON OUR AGENDA AND WE ARE ADJOURNED.

THANK YOU, COUNCIL.

* This transcript was compiled from uncorrected Closed Captioning.